The Impact of Lean on the mining industry: A simulation evaluation approach

Abstract

AbstractThe mining industry, especially in Southern Africa, is experiencing significant uncertainty and volatility, and it has become important for mining organizations to find ways to reduce cost and improve operational efficiency. The Lean principle mainly aims to reduce waste specific to resources, time and cost and has slowly been adapted into the mining industry. The main objective of the study was to evaluate the impact of applying the Lean principle in a mining company using simulation modeling. The study commences with literature review so as to explore the most recent Lean application in mining. A case study was utilized to identify and examine the production flow that exists on the diamond production set up. Sample data was collected, and a current state Value Stream Map was constructed. A simulation model of the production set up of the diamond mine was configured and simulation‐optimization techniques are utilized. The study contributes to the understanding of the link between the Lean principle and efficient execution of mining operations. The study also illustrates simulation modeling as a tool to compliment Lean evaluation.